Restaurant operators kept food cost ratios in check in 2024

Despite a sharp increase in wholesale food costs in recent years, many restaurant operators were able to keep their food cost ratio in line with historical averages. That's one of the findings from the 2025 edition of the National Restaurant Association's Restaurant Operations Data Abstract, which was released in August.

The Abstract is based on financial and operating data provided by more than 900 restaurant operators nationwide.

Among limited-service respondents to the survey, food and non-alcohol beverage costs represented a median of 32.4% of sales in 2024. That was generally on par with previous editions of this report. On average in the 2010, 2013 and 2016 reports, food and non-alcohol beverage costs were approximately 33% of sales among limited-service survey respondents.

Meanwhile, food and non-alcohol beverage costs among fullservice respondents represented a median of 32.0% of sales in 2024. That was somewhat lower than the average of 34% of sales in the last three editions of the report.

It's important to note that this doesn't mean food costs at fullservice restaurants are lower now than in years past. Instead, it means that they represent a comparatively smaller share of total expenses than they did in the past, likely because operators took steps to mitigate higher costs, while at the same time increasing menu prices at rates they haven't done in more than four decades.

One potential reason for a somewhat lower food-cost ratio is that many fullservice restaurants continue to have streamlined menus compared to before the pandemic, which may have led to some purchasing efficiencies.

In addition, with off-premises traffic representing a larger proportion of fullservice sales than it did before the pandemic, some of the off-premises focused food items may be available at a lower price point.

In addition to food costs, the Abstract contains data for several other cost categories, such as labor, occupancy, utilities, marketing and more. Additionally, the data is presented by various attributes, including average check size, annual sales volume, size of community and restaurant location.

This information can help restaurant operators sharpen financial performance and identify cost categories where data could substantially vary by type of operation. By analyzing operating costs, restaurant operators may detect potential problems, determine how to manage costs, and become more efficient.

The 2025 edition of the Restaurant Operations Data Abstract is available for purchase on the Association's store.

Note: The data in the 2025 Restaurant Operations Data Abstract is not intended to represent standards or goals for individual restaurants, nor is the report an attempt by the National Restaurant Association to set or adjust industry prices or operating ratios. Rather, the data and related 'Analyze Your Operation' worksheet are intended to be used as management tools to help restaurant operators gauge their restaurant's performance.